On ups profit outlook as Asian demand fuels record sales

On Holding AG has reported a record-breaking start to 2026, surpassing CHF 800 million in quarterly net sales for the first time. The Swiss sportswear group’s first-quarter results underscore a successful pivot toward premium positioning, yielding a significant jump in both top-line growth and profit margins despite global macroeconomic headwinds.

Net sales rose 14.5% to CHF 831.9 million, representing a 26.4% increase on a constant currency basis. This growth was fueled by a surge in the Asia-Pacific region, where sales climbed 44.4%, and a 45.1% increase in apparel sales. The company’s direct-to-consumer channel remains a primary driver of this momentum, allowing the brand to deepen engagement with its global fan base.

Profitability metrics reached new heights. Gross profit margin climbed to 64.2%, up 430 basis points from the previous year. This expansion comes even as the company navigates higher U.S. tariffs on products imported from Vietnam. Adjusted EBITDA rose 45.4% to CHF 174.3 million, with margins improving to 21.0% from 16.5% a year ago. Net income nearly doubled, reaching CHF 103.3 million.

The quarter also marked a leadership transition, with Co-Founders Caspar Coppetti and David Allemann assuming roles as Co-CEOs. Outgoing CEO Martin Hoffmann, who oversaw a fourfold increase in sales since the company’s IPO, hands over a business with a strengthened financial foundation and a robust innovation pipeline, including the commercial expansion of its LightSpray technology.

Bolstered by this performance, On has raised its full-year profitability outlook. The company now expects a gross profit margin of at least 64.5% and an adjusted EBITDA margin between 19.5% and 20.0%. Constant currency net sales growth for the year is projected to reach at least 23%, implying total sales of CHF 3.51 billion as the brand continues its aggressive expansion into new markets and retail hubs.